VeloCloud's Position Under Broadcom
VMware acquired VeloCloud in 2017 and built it into one of the strongest enterprise SD-WAN products in the market. By the time Broadcom completed its VMware acquisition in 2023, VeloCloud-based VMware SD-WAN was deployed at hundreds of global enterprises, providing application-aware WAN routing, cloud gateway access, and zero-trust network access (ZTNA) capabilities across branch and remote-office environments.
Broadcom's commercial approach to VMware SD-WAN has been to maintain the product's technical roadmap while repositioning its commercial delivery. SD-WAN does not sit inside VCF — it is a separate product in Broadcom's broader networking and security portfolio, sold through the VPP channel on subscription terms. This separation has important implications for organisations that previously bundled SD-WAN with their VMware infrastructure agreements.
Critical point for combined VMware infrastructure + SD-WAN customers: If you previously negotiated VMware SD-WAN as part of a broader VMware ELA, that discount structure will not automatically carry forward. SD-WAN renewals under Broadcom are separate commercial conversations from VCF/VVF renewals, with separate discount mechanics and separate partner relationships in many configurations.
VMware SD-WAN Licensing Structure Under Broadcom
Broadcom's SD-WAN subscription model is based on per-edge licensing — each physical or virtual edge device at a branch location or data centre requires a subscription. The subscription includes software, support, and access to VMware's cloud gateway infrastructure (the VCSP network that provides cloud onramp capabilities).
| Licensing Component | Basis | Notes |
|---|---|---|
| Edge Software Subscription | Per edge device / per year | Covers branch edge appliances (physical or virtual) |
| Orchestrator | Included or per-orchestrator | Centralised management plane; included for standard deployments |
| Gateway Access | Per-edge or bandwidth-tiered | Access to VMware's cloud gateway nodes for cloud onramp |
| Advanced Features | Add-on tier | ZTNA, SD-WAN Advanced Security — separate licence tier |
| Support | Included in subscription | Replaces separate SnS model from pre-Broadcom era |
The move from perpetual edge licensing plus SnS to all-inclusive subscription has produced cost increases for most SD-WAN customers, though the magnitude is generally smaller than for the core VMware infrastructure portfolio. Per-edge cost increases of 40–80% over equivalent pre-Broadcom SnS costs are typical, driven primarily by the combination of subscription pricing and bundled advanced features that some organisations do not use.
SD-WAN Alternatives Worth Evaluating
The SD-WAN market is highly competitive. Broadcom's pricing changes have accelerated evaluation activity, and several alternatives offer capabilities competitive with VMware SD-WAN at lower price points or with better integration into existing security and networking architectures:
Cisco Meraki SD-WAN
For organisations running Cisco switching and security infrastructure, Meraki SD-WAN provides the strongest integration story with Cisco's broader ecosystem. Meraki's cloud-managed approach is operationally similar to VMware SD-WAN's orchestrator model. Pricing is per-device per-year through Cisco's licensing programme.
Fortinet Secure SD-WAN
Fortinet's approach integrates SD-WAN capabilities directly into its FortiGate NGFW platform. For organisations running Fortinet for branch security, Secure SD-WAN effectively provides WAN optimisation at marginal incremental cost over the security subscription. The integrated model eliminates the need for separate SD-WAN and firewall platforms at branch locations.
Palo Alto Prisma SD-WAN
Prisma SD-WAN (formerly CloudGenix) is Palo Alto's cloud-native SD-WAN offering, closely integrated with Prisma Access and Prisma SASE. For organisations pursuing a SASE (Secure Access Service Edge) architecture, Prisma SD-WAN provides the most coherent integration with cloud-delivered security services.
Versa Networks
Versa is a pure-play SD-WAN and SASE vendor with strong enterprise credentials and a flexible deployment model (cloud-delivered, on-premises, or hybrid). Versa's technical capabilities are broadly competitive with VMware SD-WAN and its pricing is typically 20–30% below comparable VMware subscription costs for large deployments.
Negotiating VMware SD-WAN Under Broadcom
SD-WAN negotiations with Broadcom follow similar principles to VCF negotiations, but with distinct channel dynamics because SD-WAN is more frequently sold through specialist networking partners rather than the broader Broadcom VPP reseller base:
- Establish a complete edge count inventory — Broadcom's baseline will often include inactive or decommissioned edges
- Separate the advanced features tier from base licensing — evaluate whether ZTNA and advanced security are genuinely in use
- Obtain competitive quotes from Fortinet and Cisco before engaging Broadcom's renewal team
- For multi-site enterprises, push for a site-based volume tier rather than individual edge pricing
- Align SD-WAN renewal with VCF renewal where possible to leverage combined spend as negotiating currency
- Multi-year terms (2–3 years) with site growth commitments typically unlock 20–30% discounts from list
- Gateway access costs are particularly negotiable for organisations with cloud-heavy architectures
The SASE dimension: Many enterprise organisations are evaluating SD-WAN renewal in the context of a broader SASE strategy. If you are moving toward a cloud-delivered security and networking model, your Broadcom SD-WAN renewal may be your last. Broadcom knows this too — which is why they apply more flexibility in SASE-transition scenarios to retain the subscription revenue for as long as possible. Use this transition intent as explicit negotiating leverage.
What Enterprise Networking Teams Should Do
For organisations running VMware SD-WAN as part of a combined VMware infrastructure estate, the SD-WAN renewal is often treated as a secondary priority behind the VCF conversation. This is a mistake. The SD-WAN renewal deserves its own commercial analysis and negotiation programme:
Begin with a complete edge inventory audit, including any virtual edges, cloud edges, or gateway configurations that may have been deployed under the original contract but are no longer actively used. Broadcom's renewal baseline will include everything — your job is to reduce the in-scope count to active, used infrastructure.
Then model the total cost of ownership comparison against one or two SD-WAN alternatives. The comparison should include migration costs, operational retraining, and hardware refresh — not just the per-edge subscription cost. A seemingly cheaper alternative that requires full hardware refresh and re-tooling may not deliver meaningful savings within a 3-year window.
Finally, align the SD-WAN negotiation timeline with your VCF renewal where possible. Even if the products are commercial separate, Broadcom's account team has an incentive to retain your full spend. Presenting a combined multi-product conversation — with migration alternatives for both VCF and SD-WAN — creates a more complex decision for Broadcom's account leadership and typically produces better commercial outcomes across both products.